City Council - Regular Meeting

Good evening everyone. Welcome to the Monday, March 16th city council meeting. Trish, please call the role. Alderwoman Baney here. Alderman Glad here. Alman Dhy here. Alwoman Bassie here. Alman Davis here. Alman Cook is absent. Alwoman Miller here. Thank you. Please stand for the pledge. Pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

All right, the first item on the agenda is public comment. Is there anyone from the public that'd like to make a public comment at this time? All right, moving on to presentations. Amiz gravel pit update, you can please step up to the podium, hit the middle button, and the floor is yours.

Perfect. Okay. Hi. Um, I just want to introduce myself. I am Jennifer Wowski. I'm the land manager for AmI. I'm relatively new to this area, so bear with me. Um, okay. We can go to the next slide. So, we're we're basically just here tonight to give you guys a um an update, an annual update on our operations, what happened in 2025, um, and what our plans are in 2026. So, I think most of you know this site. Um, we have what what consists of what we call the north pit and the south pit. Um so the nut sorry the south pit has been in operation since the 70s and it covers approximately 440 acres. Um operations at the south pit are governed by the 1988 annexation agreement and conditional use permit. There have been several amendments to the original annexation agreements with the most recent amendment being approved in 2000 uh 2018. Um that amendment extended the extraction reclamation activities through 2026 and allows the processing area to remain in operation until 2032 in order to complete the north operations. So the north operations began in approximately 2000 the early 2000s. Um the entire site is about 156 acres. So that original annexation agreement and conditional use permits were approved in 20 2002. These agreements were later amended in 2023, extending the terms of the prior an annexation agreements um through to October of 2032. So, here's just a quick map of what is happening at the um at the South Pits. So, in 2025, um we mined out that cyan area. Our our

plans in 2026 are to mine out the dark blue area. Um, as for reclamation, um, we did all the sloping on the I guess it would be the east Berm. So, anything that's shown in green there, um, that entire east BM has been sloped and receded. And our plans for 2026 are to um to finish that burm up to the wooded area. So, everything shown in red will be sloped and reclaimed. uh the north pit for 2025, we didn't actually do any operations in there and we don't have any operations planned for 2026. So for complaints and violations, um we actually didn't have any in 2025. Um our ordinances lay out some pretty well some standards related to noise, dust, and groundwater that we have to follow. Um, groundwater has um it it's detailed that we have to have at least four monitoring wells. We actually have six on site. Um, we do quarterly quarterly

quarterly um testing of those wells and I believe they're submitted to the city for um you guys' records. So, um yeah, that's all I have. Does you guys have any questions? Aldwin Bassie, go ahead. Hi, Jennifer. Thank you um for coming. Um, as you know, the gravel pit is in my ward, which is ward four. So, I checked in with all the residents to see if they have any questions, and they had one question, and that is for the South Pit. Is the mining extraction and the processing still on target to be completed in 2026?

So, the uh the mining will be completed in 2026. Um, part of the reclamation requirements that need to be done this year are like I said that that east BM that will be done. The processing area is actually tied to the north side. Um, so that will stay in play until um, there's kind of two triggers on there. It's either October the sooner of when those operations are finished. Um and operations on the north side need to be completed by October of 2032. Um so we have 18 months after that date to complete the reclamation of the processing area.

Okay. So just bear with me for a second. So if I'm understanding this correctly, the mining and extraction on the south pit will be completed 2026, but the processing is still needs to be used for the north pit. So that will be completed roughly 2032. Correct. I have that correct. Correct. Y. Okay. Thank you. You're welcome. Any other questions? Alder GL.

Yeah. One of the things is uh why it's number one uh a requirement to have that processing so so much longer to 2032. Uh the north end is basically more sand than it is gravel. Is it not? Yes, I I'm going to pass that to Doug. He's our operations manager. Yes, it is. Right. So, I mean, when you're talking the processing center, you're not talking crushers as much as what?

No, we uh like the jaw crusher that was done last year, right? That was out that was out for the the main bank where right now we are we have with the water table how it fluctuates. Um, we have approximately 15 feet of bank that's that's dry and then we excavate down down to the clay. Right now that's the southside. So with our production and sales needs, it's pretty much right on the money with what we're going to sell, what we need to process this year to finish off by the end of the year for the south side. Okay. So,

so as for the north side, that's going to be market dependent on on what we would mine out of there. Um,

because I recall when when we first annexed the north side and approved that uh it was going to be a five-year program then, you know, when without it even being started and now and I guess it's the market that's dictating uh how much and how fast you're you're processing it. So, uh, the other question I've got is is, uh, what are we looking for in the future as far as development there? Considering you are RRS1, uh, on the south end, I don't remember exactly what the zoning on the north end is. Is it a state zoning? There's supposed to be a state locked all the way around a large lake.

I think they are. It's either RS Oh, no. The south pit is a state, isn't it? Yes. The south is a state and I believe the north is a state too with the agricultural mining overlay. No, the south is an RS1. The Yeah, my my understanding is the south is RS1 and the north is RE2 or RE1. Sorry. I I can look it up here real quick. I'll get back to you on that.

But like I say, I more than anything else, I'm just kind of wondering uh when we're going to start seeing some some development. uh you know, the residents out there are going to see relief as far as mining, but then they're going to wind up not as severe, but there will be some noise as far as uh development of of homes and everything else out there. And I just kind of wonder when those type of subdivisions you you plan on starting to market uh you know, do you have somebody online that that might be thinking about uh developing there or anything else? No, what right now what our mine plan uh scope looks like once uh we would proceed to the north side with the amount of overburden there. We have our uh through uh uh Wonder Lake and all that, right? We have our BMS that we're going to put up screening BMS around the property which will be overburdened and then black dirt and at the end of the mine which would be a lake right in the in the middle uh the woods would be gone and then after that it's that's what the development would come in. how that how those BMS get replaced or pushed down or put in for

for that type of infrastructure. So, you don't plan on being the land developer there as far as for residential to do the mining more so than anything else? Yeah, honestly, no. At at this, we are not in the in the business of redeveloping lands into into subdivisions. Um, so at this time, and don't hold me to this, but as of right now, we would probably look at um selling it to a developer to to come up with an overall, but that would be at least until 2032 or sooner if if the market dictates uh that you finish quickly. Yeah. Yeah. Okay. Thank you. You're welcome. Any other questions by council?

See none. Thank you very much for your time. Yep. Thank you. Have a good evening. Next item on the agenda is 5B is a conceptual presentation by Club Car Wash. How you doing, sir?

Good. If you can hit that center button and the floor is yours. There we go. Uh just give me one second to get set up here. All right. U Thank you everybody for giving me the time to just talk to you guys about the development here. Um, I'll try to be brief and kind of field any questions you guys have, but I'll start with just a background on Club Car Wash, what they do. I'll get into the site plan conceptually, and then talk about the plan development or the developers agreement. So, Club Car Wash, uh, they are based out of Columbia, Missouri. Uh, they have over 100 locations nationwide. They've recently been making an expansion into northern Illinois. I don't know if you've seen any of their facilities in the Rockford area. Um they have I want to say five of them now uh in this northern Illinois area uh with more to come. Uh they reached out, they found this parcel, they did some market analysis and found that it would be a good fit for their business model uh and are pursuing a development. It's under development contract right now. Um talking about the site, so the intention would be to use the two existing entrances that were stubbed as part of the gas station development in 2020. Um, entering, well, we'll just say you're entering on the north side of the site. Uh, you would loop through into the Q- lanes. Uh, as the name suggests, Club Car Wash. They are a subscription-based model for a car wash, so you pay a monthly fee. You can wash your car as many times as you want. They do also offer uh individual washes for a single price. Um, it's fully staffed at all times, so they have folks uh at that pay booth that are signing people up for memberships or or taking taking cash or credit. Uh you loop through, go through the car wash, heated concrete. It's an all concrete yard. Uh helps with maintenance, makes it look a little bit nicer. Uh go through the car wash. It can process a vehicle about once every 30 seconds. So um it could spit one out once every 30 seconds. Uh holds about six to five vehicles depending on the

length. Exit. There's uh existing or there's proposed self-service vacuums on site. Uh those are free for customers uh free for anybody to use. Essentially, those are turned off during off hours, uh, which is typically it ranges from like 7 to 8 depending on daylight saving time and and winter hours. Um, each one of those vacuum stansions has a trash receptacle emptied every hour. Um, and then you leave the site. Uh, there's some employee parking on there as well. Um, that's just a broad overview of Club Car Wash the site. Uh the reason for the preliminary kind of discussion and presentation today is the RR Mckenry LLC is the current owner and developer of this parcel along with the BP gas station to the east. Uh they entered into a developers agreement with the city in 2020. That developers agreement had originally called for approximately 8,400 square feet of retail strip commercial space and quick service restaurant restaurants restaurants, things like that to be used for this site. Um, I believe you guys were passed around a letter we received from the from the owners today. Um, I apologize. I wasn't able to get that get that sooner for you guys to review, but more or less it's the owner of the current site explaining they've marketed the property for 5 years. They haven't really had any luck luring in any uh strip commercial or restaurant uses. Um and they're throwing their endorsement behind our our development here as a as a good quality use. Uh we do believe it synergizes well with the surrounding uses being a gas station and an autofocused use. Um the development's approximately it ranges about5 to $6 million for the site uh all up once it's once it's constructed. Um, and what we're asking for today is to see whether or not the city council is uh open to amending that developers agreement to allow for a car wash use, specifically

this car wash use rather than that strip commercial or restaurant. Um, that was a lot. If you guys have any questions or comments, I can try to address those. Yeah, we'll open up for questions, comments by council. Alder Bainy, go ahead. Hi, thank you. Um, I have a few actually a couple of concerns. Okay. So, in my opinion, if we were to go with the retail plan as was original originally um slotted that generates tax revenue. I'm assuming this does not. Correct. Um I guess property I assume you guys have property tax. Yeah. But I'm talking about say like property tax we're going to get either way. But sales tax revenue based on service use. Yeah.

I believe you are correct. I'm not a I'm not as familiar with the financial side of it. I'm the I should have said I'm the civil engineer for the project and the project manager. I don't work for Club Car Wash. We're contracted by him, but I I assume you are correct. Okay, fair. Um, so I mean me personally, I would like to see the original plan of retail space included there. It's also kind of prime right on, you know, a major roadway and I'm not sure that the aesthetics of a car wash are that really desirable. I also think we've got a couple of large car washes here in town already. Those buildings are not very easily repurposed. should you know the competition become kind of fierce with three of them in you know one town of only 30,000 people.

Um so that's a concern of mine as well. And in all honesty we have a car wash on 31 that's about to go through some really hard times when we have the route 31 expansion project come through. And as a city council we've really devoted oursel to helping our small businesses in town to be able to make it through that project. and I'm just not sure approving a competitor for them at this particular time is something I would be interested in doing.

Definitely. Um, so I guess I think there was a couple questions in there. If I can I'll try to address them a little bit in turn. So, as far as the um whether or not, you know, there's already three car washes. So, Club Car Wash does extensive market research and they do believe that they can be successful in this location. They definitely don't want to invest, like I said, $6 million in a location that's not going to, you know, produce what they need it to do. Um, as far as, you know, whether or not a a car wash is the most beautiful thing in the world, personal opinion, I think they end up looking pretty nice. We did share some renderings. Um, but I understand that that's, you know, that's a preference opinion. Um, was one other item in there that you mentioned that you were concerned about? Boy, I don't know. Sales tax. Sales tax.

Sales tax. Sales tax. Yeah. So we already I assume you are correct that revenue or or service uses don't generate sales tax revenue. Um what I can say is it's it's a an attractor here that can synergize well with the existing auto uses around there. Um I I I don't I don't I don't have a great answer for the for the sales tax portion of it just because you know we can't control what that is. But that was what I was going to mention. Um

on the on the um the use side of things, whether or not you know a retail use would be more desirable from from your perspective. I do think part of it is that the the owners have been marketing for retail use or for a restaurant use for approximately four to five years at this point and have not been successful and don't see that success coming in the future, which is why they're supporting this development here. Um, so I I think that's just one thing to keep in mind as well. But absolutely. Thank you. And you know, I do have one other question. Yeah.

I noticed in the drawings you have the um dryers facing the neighborhood. So like the exit where the dryers would be are actually facing not facing 120, but facing into the neighborhood. How loud would those be and what kind of impact might that make on those homes?

Great question. So we do have some noise studies. Um I don't have them on me right now, but we can share those with planning. Um it's it's a car wash dryer. It certainly does generate noise. Uh we're able to put there's some suppressors we can put on those that help cut down on that noise. We can also screen it um very well. Uh their landscaping is very intensive what they do on these sites. They sort of look like a jungle. They're very very heavy landscaping. The combination of like arborvite trees and uh actual fencing provides a significant amount of screening from that noise to the point where we can drop it down to about 65 70 dB when we're getting to a property line which typically is in line with most municipal noise ordinances.

All right. Thank you very much. Definitely. Any other questions? Alder GL. Yeah. So, what kind of hours are you talking about uh as far as how late uh Yeah. You'd even hear those those dryers going. Correct. So, we have t or our our typical hours are 7:00 a.m. to 8:00 p.m. during the summer, 7:00 a.m. to 7:00 p.m. during daylight savings. Uh, and then the car will only be open 8:00 a.m. to 8:00 p.m. or 8:00 a.m. to 7:00 p.m. depending on daylight saving on Sundays. So, that's the approximate range of that that operation. And then, like I said, they do shut off the the exterior vacuums. in the car club. Is is that uh the same company that opened up in Crystal Lake on 31 in front of the Walmart?

In Crystal Lake in front of the Walmart 31. We're looking we're looking to get into Crystal Lake. We do told me they bought an old car wash car wash, right? Yeah, they may have done a like a rebrand. That's possible. Yep. They're giving out dollar dollar car washes right now. Correct. Yeah. when they open up, they typically they typically do dollar car washes to get get traffic in there and get people signed up. Um, one of my concerns is the fact that uh we had a million dollar uh uh recapture on sales tax. How much have we paid in or paid back uh so far on that? Do we know, Caroline, by any chance?

Okay. Uh while she's looking that up, we'll uh uh one of the other things is uh there was a uh convenience store that we were required, I believe, to give a liquor license to package liquor and uh and video gaming with it. So, would that be taken out of the agreement? Uh that would all have to be rewarded. Yes, we would have no because we're not going to put it in the car wash. We already had one car wash that we uh denied a few years back. We would have to amend it and remove that language.

Okay. Okay. So that you know it doesn't get missed. Um again thing is is uh if we're amending it are we going to amend the million dollars worth of uh incentives uh you know and reduce that uh considering uh we're talking a lot less uh retail sales tax there then uh if nothing else put a limit on how many years uh that we're going to pay out to it. you know, if they reach that potential up to uh a certain year, it's one thing, but after that, it should just go away. My feelings on it. So, that's that's all I've got right now.

Thank you. Any other questions? Alden Bassie.

Okay. I actually don't have any real issues with the car wash um in the location, but I do want to piggyback on some of the comments that Alderwatt Bainy said and that Alderman Glab said. um about the noise. My my only request is that you would include trees in the green space area. Um that would be an ability to buffer some of the noises. It did sound like you're going to have evergreens, which are great um ways to buffer. So, I think that both of them have brought up valid concerns, and I think that aesthetically it would look much nicer if it did have some trees. So yeah, those are my only comments.

Definitely. I I I want to express that their landscaping plans are very very serious. Like there's a lot of shrubs. There's a lot of trees on these. It like some of these have one of them we did in Wisconsin I think had 60 trees on a acre site. Like it looks like a forest sometimes. So definitely definitely will be an intensive landscaping plan especially on that suburban border to the north. I can assure you of that. Thank you, Aldin Miller.

Thank you. Um, thank you for your presentation. On first blush, I I have to say I'm not in favor of a car wash out there. Um, again, I'm in real estate. I think that is prime real estate and I think it's the gateway to our city coming from the east. Uh, many years ago in Mckenry, we were known as the mattress city store because we had 20 plus mattress entities. Um, googling today, how many car washes do we have in town? We already have 10. Um, I I don't know that we need another. So, I'm concerned for my existing business owners. We all I don't want to suppress opportunity, but I always want to support my business community that supports our community in whole. So, I I don't I don't know that it's the highest and best use of that parcel. I understand that they've marketed it for five years. That whole corridor has gone through a great deal of transition in the last five years. So, I'm I'm not sure even with the comments, you know, tether down the dryers, add more bushes. I don't know if that sways me in your favor or not because I just think we already have a saturated and I'm not a car wash person, although I wash my car a lot. Um, I I think we already have an ample market that is saturated with a variety of opportunity already. So, I don't I don't know that I can support your car wash. I'm sorry.

Sure. No. And and I do appreciate that. Um, one thing I will say is a lot of times, you know, when people do search for car wash in Google, a lot of times what comes up is like a gas station, like a single stall car wash that that is it is a car wash, but it is, I would say, like different in kind than this, which I'm sure you appreciate. Um, but yeah, I guess the only thing I could say is that they do their market research to know that they'll be successful and that there is a need and a desire in this area for for the car wash. But I I totally appreciate your stance

and I appreciate that. There are days that I go for a $5 car wash cuz I just need the crap off my tires and then there's day that I go for my $30 car wash because I know I need a good job. So, um I I I absolutely take advantage of the opportunities that I have in town and try to spread the wealth amongst all my business people. Um and I appreciate that you've done your research, but again, I always have to go back to my roots. prime real estate. That market is changing. We're gonna have 180 duplexes across the street. I don't know that a car wash is what they need right there. Um, if I could put anything there, I'd put a grocery store there, but I'm not a ger. I'm not going to invest in a grocery store, but just my food for thought. Thank you.

Alman Davis, any input on this? You can hit your mic if you don't. Yeah, I mean on that side of town, I don't think we have a good car wash, but we do have plenty in town. And, you know, with the development, it may be something they're interested in. But I think the one that hits me the most is that, you know, this that is coming into town. Um, do we want that to be, you know, the main focus as somebody comes into town? That would be more my concern coming from that perspective. So, thank you. Almond,

I'll go against all of them. I would welcome that on that side of town. I think it's uh quality product. I've seen the buildings. Um I think coming in we already have other vacant storefronts there that could serve the need if we have a need. There's a restaurants that have been sitting empty off and on for years. So there's plenty of space for other developers to come in and take over some of these smaller areas that need redevelopment. I think this combined with the gas station next door, the strip mall next door is actually fairly attractive. I think would only complement that area and I think it would be welcome to drive into the city and see that see a thriving business that may also generate those other areas to improve. So I fully endorse it.

Definitely. I appreciate that. That's definitely you couldn't have said it better myself. Go ahead.

Okay. What I wanted to mention is the fact that I know we we're talking about it so many car washers in the city and we talk about the the mattresses we uh stores we've had and everything else in the past. Um if we probably go back 50 or 60 years ago uh the city created an ordinance uh because of how many gas stations were coming in and how far apart they had to be and everything else which wound up to be a headache. uh the banks uh yeah at one time we had what was it about 20 some odd banks uh in the city of Mckenry uh back about uh 25 26 years ago um but what happened uh it's capitalism I mean uh competition and the strongest survive and those that are there now just rely on their business possibly just is the way it is without any improvements and and possibly when there's more competition coming in then those businesses that are there now and existing have to change. It's just like what happened to our downtown area. You know, if you go back to the days of when Kmart came in and Walmart came in and everything else, what happened at that time? Uh we had uh businesses that were used to closing up at 5:00 in the evening uh 6:00 in the evening. um you know people come home from work uh everything's closed and then you know you get your discounters they came in and they are now open till 10:00 and in some cases they were open around you know 24 hours and uh if these businesses didn't change uh to uh the type of business you know competition they had they died off so uh I think to some extent uh with the car washes it's going to be the same thing

you know the the mattress uh stores uh faded away because of competition. The strongest survive, the rest fall fall down. What about the ones that are on 31 and have no control over? I mean, they don't need to change. They're being I'm sorry. The like the car wash that's on 31, he doesn't need to change. He has he has a great business. Okay.

However, he's going to be faced with a challenge that he has zero control over. So, I do agree with what you're saying. I I totally believe in that as well, but I just feel like in this situation, we've got a business. We've got a business that's going to definitely be hurt when the project starts and then hurt when someone else moves in with a competitive business and he can't, you know, physically get as many people through. Yeah,

I think I think to some extent uh we have to be careful of uh keeping development uh away because of the fact that we don't want to see uh competition with the existing businesses. Uh competition has never uh never hurt in the in the past and uh I mean let's face it, that's what our country was built on was capitalism. And I'm not saying it's all 100% good or 100% bad, but that's the way our country has always run. And uh to some extent I I'm in favor of a car wash over there. I I think more than anything else is they've had a hard time uh marketing it for, you know, the last five years. And granted, you build them, you build it, there's a good possibility that someone might come because of the fact that it's built. sub companies aren't going to wait for you to, you know, get enough uh tenants to start building it and wait another year or year and a half. Uh if it's built, maybe you would have had some tenants come in, but then that's a lot of outlay that you put out without any guarantees. So, and I can understand. I mean, that's business. Um let's face it, the days of brick and mortar is getting tougher and tougher because of online sales and internet and all that. So, um, we could be waiting another 15 or 20 years for development here, or we've got a good possibility of a decent business coming in that will be attractive rather than an open lot. And that's the way I look at it.

Thank you. Go ahead. Just some food for thought. In some of the research I was doing before the meeting tonight, um Crystal Lake actually denied them opening a new car wash. Not because of the company, but because they weren't going to let any more car washes in Crystal Lake. And so they were able to take an old one, rehab it, keep the existing number of um car washes. So other communities around us are seeing that these buildings aren't very repurposable, and aren't really the best aesthetic. Also, El Gangquin will not allow would never allow a facility like this to be on that main highway. They make them take them off the main road. So, just kind of looking at what some other affluent communities around us are doing. Just something to think about.

Ross, go ahead. On that note, I just want to remind council, maybe there were some member council members that weren't here about 5 years ago. Um, we we as staff were directed to take car washes and make them a conditional use. They were an allowable use in a C5 district, but because of the amount of uh car washes that we're proposing in the community, we were directed by the council to uh make them a conditional use so you could take them on a case-by case basis. Yep. Thank you. Aldo Miller.

Yeah. I just have a couple I have a question and a comment. Um my question is to Director Palari. When we approved the trio on the west side of town, did we not approve a car wash in that schematic as well? There is a car wash that is on Yes, that is approved on that site that has yet to be constructed. Um, I'm not exactly sure when they are going to construct that. However, it's just a matter of submitting building permits to us. There's there's no other approvals by council or city or uh planning zone that's already been done because that's approved and in the works,

correct? Okay. So, and just as a comment, on a recent road trip out east, I was in Ohio and they took a car wash that failed and turned it into a drive-thru liquor store, which was an incredible experience. Um, they took both the rail you they filled in the rails and they put coolers all the way down the tube of the car wash. The purchaser never got out of her vehicle. I drove down and the little person went cooler to cooler and at the end of the building I gave them my credit card in return for my purchases. And I said, "What was this building?" And they're like, "It was a car wash." And I was like, "OMG." Um, so how long is this car wash?

Uh, this is a this is 136 feet. We also have one of those where I went to high school. Also, also a repurposed single bay car wash. Not that not that we're to fail here. I don't think we will be able to builds and fails as a car wash. We could have our first drive-through liquor store. Do we allow drive-through liquor stores? I mean, I I thought it was a cool concept and it's a great building for that, but I think it would be a great concept for somebody else's car wash. There we go. Thank you. Thank you. Any other questions, comments? So, right now I although ambassy, are you for this or against? I'm

okay. So, it's three and three. Obviously, we have a C Well, maybe you don't know, but there's a council member that's missing tonight. Um, so I would suggest because of it is tied three and three. I would suggest um meeting with uh Alderman Cook to get his opinion on this. Wait, go ahead. I'm not necessarily against it on the fence. Okay. I mean, I'm not necessarily against it. I'm on the fence with it. Um, on that side of town, there isn't

um necessarily a car wash on that side of town. Um, so I can't I don't know if I would say I'm for or against at this point, but with some of the other comments, um, I would like to hear more about this. Uh, I don't know. I I may be for it at this point. I don't I don't think that it's a necessarily because again, there's different types of car washes and the ones at gas stations are are are vague, you know, vastly different than um some of the other car washes, you know, in town. And again, those are few and far between. I will say that when we when we talk about other businesses in town, um when there was a couple in town, they were the service was was great. And I'll be honest that service has gone downhill on some of these. So, I don't think again to other comments that competition is necessarily a bad thing. it's going to force those other ones that are um maybe kind of just uh stable right now. Need to up their game to bring that in. Again, I don't know if this is going to cause that or or not, but I've never been to a club, so I can't really necessarily say what the quality is from those. So,

okay. All right. So, there you go. So you kind you right now it's a four four to two. Are you a voting member? No, I am not. Okay, gotcha. I think I know where everybody stands then. And then there is a a question or I guess a member missing you mentioned. Yeah, Michael Cook. So he's al and uh I we'll touch base tomorrow or the next day after the meeting. Um, I can I can have a conversation with with Alderman Cook, see where he's at. Uh, he's got a he's from Green Bay and he's driving back tonight. So, yeah. No, you don't have to do it in in person.

So, I'm just saying, yeah, in person. So, I will get them to to communicate and then uh and then he can make his decision on whether you want him. Chief, can you drive him back? The roads weren't all that bad uh past FondeLac. So it's it's I I think I'll be all right. But um so just just to confirm, I have needs more convincing. I'll kindly say uh in favor in favor. Yeah, but don't don't these aren't votes. No, no, no. Of course not. Of course. This is I I totally understand that these are not votes. This is just

I'm just we're just deciding whether or not we invest the invest the time to to continue moving forward. Possibly in favor. I'll say possibly in favor. Possibly not in favor. Awesome. Okay. I appreciate that. Yeah. No, that's that's that's what we were looking for with this. So, I appreciate everybody's time. Um if there is any additional thoughts or or comments or things like that, please I'll be in contact with the community development director here and we'll uh we'll be in touch. So, sounds good. Thank you, Michael. Appreciate it. Appreciate it, guys. Have a good evening. You as well. Thank you, Mike. All right. Next item on the agenda is uh 6A through F. The consent agenda items. I'm looking for a motion to approve 6A through 6F.

Alderman Dhy. I'll make a motion to to approve consent agendum 6A through 6F as presented. Thank you. Aldwin Miller for a second. I'll second that. Thank you. Discussion on these items by city council. Aldo Bassie. Thank you. Um, when this was when this list of roads was presented in July, there was varied feedback from the council, my feed. What item are Oh, am I on the wrong one? We're on consent agenda items. Oh, never mind. All right, so you're good. No questions. I'm retracting everything I just said. Perfect. But you're going to hear it in a minute. All righty. Clerk, please call the RO. Alder Alderman Dhy. Apologize. Alderwoman Miller. Yes. Alderman Davis. Yes.

Alwoman Bassie. Yes. Alderman Glad. Yes. Alderwoman Bainy. Yes.

Thank you, council. Next item on the agenda is 7A, 2026 road resurfacing program. I'm looking for a motion to a award a uh the 2026 road program to Peter Baker and Sun Company of Crystal Lake, Illinois in the amount of 1,636,737.97 and approve a construction contingency in the amount of 10% of the awarded contract price which is $160,673.80 80s and B pass an IDOT resolution for maintenance authorizing the use of one,800,412 of state motor fuel tax funds for the project. I am looking for a motion to approve. Alder Miller,

I'll make the motion to approve the 2026 road resurfacing program as presented. Thank you. Second, Alderwoman Bainy, I will second that motion as presented.

Thank you. Discussion on this item. Alder Bassie. Thank you. Now I can say what I wanted to. Um when this was list of roads was presented in July, there was varied feedback from the council. My feedback was I would like to see the list of roads amended and include Oakwood Drive. Um and that did not happen. But generally speaking, the list of roads included is fairly distributed throughout the city with the highest concentration in Mckenry Shores neighborhood which is appropriate due to the conditions. The only road that I do not think is appropriate to be included and is why I'm going to be voting on this is Dartmore Drive just off of 31. This is a 769 ft deadend road that only serves as an access road for one business with the other two non-road sides being undeveloped land. I requested a cost estimate of this road only and it was just over $52,000. Because the vote is tied to these pre-selected roads and cannot be altered, I will be voting no. I do not think it is fair for residents to use their collective funds to improve what is essentially a private access road for one business in lie of roads that would serve a greater number of people. Thank you.

Any other Russ? Go ahead. Just one thing I would like to point out with Dartmore is Dartmore Drive is the only full access to that business for traffic coming from the south or for traffic that is leaving to head north. Um, obviously we're talking about bus forward, they have a right in right out off of 31. but any other of their clients, many of whom are residents of our community who go there for service, for parts, for whatever it may be, Dartmore Drive is a critical access point for that business. So, it's not just benefiting the business itself. It benefits the residents who frequent that business. So, I just want to make sure that everyone understands it's not a private driveway, it's a public rightway that their full access driveway is connected to. Also, I do want to make a state Oh, sorry. I do want to make also a statement. I don't think Bus Ford has ever asked for a handout at all from my understanding as far as sales tax incentives um of any sort like our other car dealers that are in town. So, I just want to keep that in mind that bus ford is not that they've reached out and requesting the street, but keep that in mind as well. you got a a major taxpayer in town um that has a road that is our road that should be paved accordingly in my opinion. So, Alden Bassie,

go ahead. Oh, Alen Glam, go ahead.

Yeah, I wasn't in favor of this the last time we had the discussion too. However, uh with some discussions that I had with uh Russ Adams, uh uh the point of the ingress and egress, uh I've never really thought about as much. Uh one of the things that concerned me is is uh the length of time that uh the road has been there that it already needs to be redone. But then again, uh we were looking at the uh uh the thickness of the the road pavement uh that was built at the time uh what we required versus what we require now. And I think it may have been a lot less uh in those correct and uh more so than anything else. Uh that might be one of the reasons why we're looking at re redoing it now because of that. Uh uh if you recall um several years back we did uh the west side of uh uh of the the creek uh over on Dartmore, the major Dartmore uh where it had only been done uh what eight or nine 10 years earlier. Now, whether that had anything to do with the the creek beds overflowing when we had the the uh hundred-year storms, I don't know. But uh um I think what we require now will make any new roads and the roads that we're redoing last a lot longer to where we're going to be able to catch up quicker. Um, and I do understand uh older woman Bassie's uh point on that and I kind of agreed with it until I started researching other things which did kind of change my mind on it.

Hold on. Thank you.

So again, I've learned more about roads in the last five years sitting in this council position than I ever thought I was going to learn. Um, I appreciate that we're staying on scale, that we did a study, we looked at our entire 126 linear miles of roadway, we created a schedule, and we're and we're staying on track. What I learned in the last week, uh, I had a constituent, the president of the, um, Patriot Estates reach out about their entry that there, if anybody goes down, it's pitted and potholey and kind of cracky and kind of really awful. And um I of course for lack of understanding referred that to director Adams who educated not only my constituent educated me that the most expensive part of road reconstruction and surfacing is the moving of the equipment. The actual creation of the road is just a small piece of that puzzle. Um, and when I look at this map and I see that we're all over the place, I get why this is a million six because we're moving a lot of stuff. So, I'm in favor of staying on track with the schedule we've created by the objective analytical review of all of our roads, trying to get us out of the red, out of the orange. What's the next color up? Yellow and then green. Um, I think we're doing a good job at it. And if we can do more, we do more. And that's what Director Adams offered to my owner out there at Patriot Estates. That that surface built 15 years ago is not the same surface that we use today. It deteriorated because it was not the same time that they did the rest of the roads. It would I think the number you gave me was like if we really had to do

the surface it was minuscule like $15,000 in material but it was huge in getting it there getting the the vehicles and the equipment there because we got nothing else going on out there. So I think we need to stay on the schedule and that's exactly what this does. So thank you Alman Davis.

Yeah. So I'm I'm in favor of it. I mean I'm um I think we should stay on track too. Obviously we did the study. There's a reason we did that. It things were graded accordingly. Uh one thing I was just thinking about bus for when we're redoing that is there a would there be anything to because of the um the elevation of that and how it's pitched. You know it is kind of pitched higher on the road and goes down where it dead ends. Is that have anything to do with that deterioration? And if we're looking at redoing that, is there a way we could uh somehow put channels on the side so the water isn't constantly because that is the way it's pitched that water has to, you know, that water runs that way. Um, I mean, have we looked at it from an engineering perspective just to make sure that we we're not running into this and it's not necessarily the depth in the past that we put that material that it's maybe how that's running. You know, just food for thought on something that we're looking at that if there's a little bit of, you know, we could run a concrete channel down the side to wash that water away rather than it running straight down that street because of the way that it's pitched.

So, we do have um concrete curb and gutter out there. Okay. Um and storm drains. There's no drainage issues that we're aware of out there at this time. Um I mean certainly if issues do arise, that's something we can look at. Um, and the drainage out there is all going to be changing with the Route 31 project that's coming anyway. So, I think at this time, if we were going to look to address anything, doing so after the Route 31 drainage improvements are in place would be the time to take a closer look at that.

Al, go ahead. It wasn't the thing I was going to address first, but as long as it was brought up by Alderman Davis, as far as roads running down there and the water running down the road, it's it's a good thing that it's running down the road and continues to road. Uh I think our concern should be more is uh whether or not there's any infiltration on the sides between the curbs and the and the pavement as far as to get underneath. Uh we had that uh happen uh back uh well quite a few years now when we did uh uh Sussex and Ashley. And at the time, uh, they looked at the road and we had a roller coaster, uh, going and, um, basically the concrete had never been touched since the subdivision was started back in, uh, whatever it was, 1966, I think, or 65 or 66 when they did that uh, part of the subdivision. It was the second wave of Whispering Oaks. Anyway, uh all they did was grind and overlay it, but they did change and and put in all new concrete. Uh I'm not saying that's what this case is, but we just as long as everything's sealed and done right, uh we shouldn't have a problem with uh with any kind of uh water deter, you know, deteriorating the the roadway. Um, one of the other things I did want to mention though while we're we're discussing the road program and the five-year road program is the fact that uh it seems like the five-year road program is working. It seems like everybody seems to be happy with it. However, I'd be a little happier if u the next time we do the five-year that we actually discuss it here at the council before we take and in other words, let's let's look at the ratings before we start setting up a whole

five-year program and and let the council be uh involved in it. this way. Um there might be uh things that an alderman that lives in a certain area is more aware of either the use of the roads or or what you know what kind of problems might be causing some of the uh deterioration of those roads or whatever. Uh they to where it could be discussed. We did that years back when we had the public um public works uh u committee.

Uh but we don't have those anymore. So maybe we have a either whether it be a committee of the whole or just at a regular council meeting that we actually look at it and tear into it and if every council member is aware of what their roads are like uh they can you know sit there and um even though the ratings might be uh x y or z uh there might be issues they can bring up to where it might bring uh a road to light a little quicker because of uh and so when their constituents uh approach him and say, "Well, how come my road isn't getting done? Uh you've got more to say than, well, the rating was this and that's that's it. What's your involvement in it?" Well, that's what the rating said. Now, you fought for your your constituents. Uh but uh the council didn't agree with it or whatever, but at least the council is involved more in the decision of those roads. And then we have the five-year program and then that's where we lie once we've made our decision on it. But I think the council should be a little bit more aware or involved in uh in creating that five-year program before we we go forward with it. On the next one.

Sounds good. Thank you. Any other questions, comments by council? Obviously, no public comment. Trish, please call the role. Alwoman Miller, yes. Aloman Bainy, yes. Alderman Glad, yes. Alman Dhy, yes. Alderwoman Bassie, no. Alman Davis,

yes. Thank you, council. Next item on the agenda is 7B, right ofway cheer uh tree clearing contract. Motion to approve a contract with Advanced Tree Care Incorporated to provide rightway clearing services for Martin Road, Ringwood Road, Ridge Road, and a contract price of $35,600 plus a 10% contingency of $3,560 for a total amount of $39,160. Looking for a motion to approve 7B as presented. Alderman Dhy. I'll make a motion to approve item 7B as presented. Thank you. Alderman Bainy, I'll second the motion. Thank you. Discussion by city council. See none. No public comment. Trish, please call the role. Alderman Dhy. Yes. Alderwoman Bainy,

yes. Alderman Glad, yes. Alderwoman Bassie, yes. Alderman Davis, yes. Alderwoman Miller, yes.

Hey, council. Next item on the agenda is a license uh agreement with the RiseUp Foundation. Looking for a motion to authorize the city administrator to sign the proposed license agreement with RiseUp Foundation regarding temporary occupancy and use of Miller Point Park uh for the 2026-27 season. I'm going to amend this motion a little bit. Uh it's going to include the RiseUp Foundation will be responsible for any maintenance and installation for the 2026-27 season. and the city of Mckenry is going to be responsible for taking down and storing the rink uh as this is owned by the RiseUp Foundation. Um, also with this motion, I'm also going to make uh and part of this motion is to reimburse the city for $1,92.50 uh for the pump because the uh rink is owned by the RiseUp Foundation. Uh we will be reimbursing the city for a pump that went bad at the rink for 2425C. So that is the motion. Is that good?

Sounds good. We're good with that. All right. Um, so that is the motion that's on the floor. Uh, $1,92.50. Alden By, I would like to make that motion as presented um for the licensing agreement with RiseUp Foundation. Thank you. Second, Aldo Miller. I'll second that motion. Thank you. Discussion on this item. Aldo Ambassi, could you pull up the actual agreement, please? Would that be possible? And David is aware that he's going to have to modify this agreement. That's why he was taking a picture of the motion. Okay. Just so you know.

Right. And I do want to say that the mayor and I did have a very long conversation today, which I think we'll both agree was um a pretty decent conversation. Um my only concern my my concern is where it gets to the point I think it's number seven. Okay. Um, let's see. Can we shall we could you go up one to six? I'm sorry. I should have I'm looking for the part where it's going to be an annual uh the city and the rise will sit down and decide the terms of who's paying for what. Number four. Okay. The parties acknowledge that installation, removal and seasonal operation of the ice rink may require certain annual costs. The allocation of such costs between the city and the lency shall be established annually by a separate written letter agreement between lency and the city administrator. I do have um issues with this. I think that it uh does put the city administrator and the lency at um for lack of a better word a power issue. Um as we know the city administrator does in fact report to the um ma uh the mayor on a daily basis. I would be more comfortable if it has it listed out who's going to pay what before we agree that to this. For example, if it's um the city will put it up and take it down and store it and any kind of operational fees. For example, if

something breaks, Rise Foundation will immediately pay for it. So, I I'm not comfortable with having it listed as um they'll agree later at a later time.

I should speak to that. I wrote this. Um the reason I put it that way is because we don't know. Just like you just said, for example, I mean, there could be examples you didn't say. We can't predict that. There's no way I can write this and say here they are. here's our costs that we're going to allocate because no doubt there will be wrong there'll be another one or there might not be one. So I don't think this is avoidable. I think you either have to I I think you have to agree to it year by year after they occur. If somebody can predict it then given given well even the installation costs go up every year. I mean it went up from

you may want to split those you know who knows. I mean, maybe what you mean is not the city administrator. It should be city council. I would be more comfortable with that, which is fine, but uh it's the same issue though. It's just you'll be making the decision about things later instead of ahead of time. And I think if we did switch to city council versus the city administrator, I think it would be less stressful. And the reason I put city administrator in because I thought this was peanuts. I didn't think this was a big deal. Okay, that's why I did that. It wasn't to diss the city council. Obviously, I could have put the city council in there. I just thought it was kind of what I call peanuts. No, I didn't mean that. It meant

don't undermine things small items, you know? I mean, we were talking $1,900 pump. Who cares? It's Would it Would it work to do sort of classifications of so annual annual setup and take down and then maintenance like those types of things? I would be more comfortable with that. So, don't know what those amounts are.

Yeah, we just don't want we won't know what the amounts are, but obviously my authority goes up to $20,000 without city council approval. So, right to to just do sort of class classifications of those types of items and limit it by the city city administrator's spending authority potentially so that we don't have to so if a pump breaks then we'd be back here by this like talking to the city council about a thousand expense which I don't think is the intent and I understand it but I'm saying if the pump breaks it should be the Rise Foundation's liability and not the city's but I but I think you can you can get to that without listing out specific things to David's point it can be maintenance or or um you know repairs those types of items.

Yeah. Is there a is there is there a certain amount that Yeah. Like Suzanne you can just sign off on and if it goes above that then we could just you know maybe add with city council approval at the end or something like that. I mean you're never going to know what that is right. So the changing prices a lot of this is paid direct. So we like even for um Iron Sleek we actually paid it direct. the invoice never went through the city and then we reimbured. So really we'd be paying the fee directly to Iron Sleek like we did this previous year. Um and the same thing for the pump like we would so if we want to change it that this uh RiseUp Foundation would directly pay for any of those costs that way it's outside the city as a whole

just reduces how much the city's going to get in the end. Yeah. Yeah. You all understand it's a 100% a 100% of the net proceeds goes to the city as I understand it. So if you want them to pay $10,000 out of those net proceeds, you're just going to get 10,000 less on the net proceeds. It it it doesn't make any difference at the at the way it's allocated today between Rise Up and the city. It could change tomorrow or whatever, but right now it's 100%. Yeah, we might be a little getting a little too petty on some of these things.

I I think the language is normal and customary to a license agreement and I believe that the job of the city administrator is to make sure that the little peanuts are taken care of. Um, so I like the language as it's written since there is a bunch of unknowns. This happens to be the lency is rise up happens to be someone we're familiar with but I don't think the language would be different if it was any other lency. So I'm very comfortable with the language as written. Thank you. Any other questions, comments? Alderman Benny,

I just want to say once again um how grateful I think the city should be that the ice rink is even been installed on Miller Point. I live right there. I'm there all the time. It is frequented by families, little kids. I was there one day. It was a family, they brought their two toddlers. It was their first time skating. We've had Olympic medalist or Olympic hopefuls on that ice. And um it is just such a benefit to have that there for free. It's used frequently. I think it looks great. It's maintained great. And I just want to say thank you to Rise Up for providing that to our community.

Thank you, Alderman Glove. Yeah, just the fact that uh you know we discuss uh the RiseUp Foundation events in the fall, we wave all the the fees because of the fact that we expected to see donations uh to the city. And I think I'd be surprised if if any of our older persons knew that that skating rink didn't belong to us all along. And until this came up uh on the sign issue and everything else, we never really realized that it didn't belong to the city. And I think it's a bad precedence to to give the licences out there.

Um and I would hope that we don't have any other issues out there of uh donations to the city that we didn't properly accept or that we assumed that were were given to us that actually weren't. But, uh, I know I talked to the the mayor and eventually it will get

brought to the city and given to the city and, uh, and and that's great, but I I think to some extent we just need to be a little bit more aware of, uh, when things are donated, uh, like we had the Levy property many years ago and and everything else that yes, it is the property of the cities and not not somebody else's. I I can I should speak to that as well because I was involved in that.

The the the way this occurred in the past perhaps with other items related to rise up and maybe some other donations that have been made is is occurred at the moment and maybe it's still wrong today. this one. No one in the city thought any other tees needed to be crossed or do eyes dotted until I got involved. And if it weren't for Chris talking about a sideshow of this, it we never would have found it. I don't I don't think we ever would have thought of this because it just occurred. It's being handled smoothly and it is what it is. You might hear about it if there was a lawsuit, right? If somebody gets hurt, you might hear about it because someone's going to uncover it. So that's a good reason to enter into these type of agreements or the alternative to, you know, acquire title at some point. But until then, it's it was just a fluke. So then maybe now we want to look back and start crossing some more TE's and so forth, and that's probably a good idea, but it just happened. It had nothing to do with the staff other than missing a very fine point that distinguishes these boards versus the spray whatever it's called park that's poured on the in ground and you know it becomes a fixture. So those are two different things. I just um so it just it just occurred innocently and again if she hadn't said anything we we wouldn't have found it. So that was a good thing.

And I think it's important to know that like in the reason why we don't want to transfer it as at this time is because the donors are actually covering our cost so it's not going on the taxpayers of$6 to $10,000 a year for an ice skating rink that not everyone uses. Um so I think it's important to continue that but uh we will be bringing something back uh to city council for taking ownership of the actual rink at some point at some point. Right.

Thank you. And and I know this was something that you and I had also talked about this afternoon that I would like to make a suggestion when it is signed over, the rink is signed over to the city, which I think is an important thing that needs to be done that the donations from the rise uh concerts for 25 and 26. I know council has to approve this, but I would like to see 10% of whatever is donated to be put into an escrow account or as you had called it on the phone, a slush fund, whatever we choose to call it. So that when the city does finally take ownership that we do have a buffer that can pay for any of the expenses that as we all know will occur. and we are still protecting I guess the citizen the residents from any additional cost to them. So that is one thing that I would definitely want to see um going forward and then I once the city does take ownership um based on ordinances there would be no signs and it would just be the rink and the backings. So again, those are things that you and I had talked about that I would want to see um when it is turned over. And my next question is, do you have any idea when you are thinking to of um

I mean I guess it depends on the council at that point. That's like when they ask me when I'm going to retire, right? Like when is that going to happen? When is that?

Um uh no, I mean it really depends on the council at this point. I mean, if if you want to go on to the taxpayers or, you know, at this point, you know, how long are we going to really do the concerts for you, right? I mean, it's it's very tiring and uh we had that conversation as well. I mean, it's it's a lot of hours. It's a it's a huge risk and a lot of the big festivals are actually uh going away. um one just from 28 years of being in business has just uh closed their doors and due to insurance costs and uh production and uh tickets not selling as well. So I mean it's all a risk. So uh that's that's going to be another thing. You could say 10% we don't even know if we're doing a show in 2027 at this point. So

and I understand that and and I I thank you for that information. I guess what I'm trying to get to is um are you looking in the next two, three, four, five, six years and in the meantime I think we need to somewhat be prepared by the donations. Well, by the time I'm for sure by the time I'm done being mayor, this rink needs to be turned over to the city. Thank you. Okay. So, I don't want I don't want an ice rink in my backyard. Four years. Huh? Seven, six, seven.

No, no, no. It's not that long. No. Well, I would like to make a suggestion which you and I had talked about in our second conversation that it would be if you were thinking about turning it over to the city while you are still mayor the year before or 12 months or so so that there's a nice clean transition whoever is the mayor in whenever it will be all set up and it will be smooth sailing for the next person. I think we all agree that we want to make sure it's a smooth transition. I don't want to own ice rink. Um, so or rise up doesn't want to own ice rink. So, right. Um, but yeah, so I mean, as long as the city council's uh for taking it over sooner than later, I I I really could care less as long as it's after the 26 27 season. Okay.

And at that point, the council can make that decision on whether they want the the taxpayers to pay the fees or if they want um the Rise of Foundation to continue to get donors to cover those costs, which I think has worked out well. Um, I know there's some um concerns about the logos, but these are all local businesses that are in town, and I'll just stop it at that. Alderman Glenn.

Yeah, I was just going to bring up the the locals. Uh, this all started because of the signage. I mean, really, that's were the first thing that came up. Now, the way I look at it is just because the city eventually takes over doesn't mean that we couldn't still ask for the donations um and have the signing out there of those donations. But then what we do need to do is is let's say like at uh our annual meeting or something that we actually have either a proclamation or or some kind of thing that goes on the records of what our donations were were given for the the ice rink. So if somebody complains, we could say, okay, you know, these people, you know, if you take a look, uh, it's on record. These people took and and donated to the city for the operation of this this beautiful ice rink, and this is just a way that we're we're showing who, you know, who our backers are. I I don't think I'd have a problem with that, you know, and I think there's even other ways. out in the open and if they want to look at it, you know, and and research it, there it is on the city council minutes, you know, uh, back in May of whatever year.

You don't even have to do the boards. Like, we could do just a one sign that has the the logos on a sign that's not around the boards if that's a real concern for But all I'm getting at is I mean, if we got businesses that are willing to donate to it, why would we, you know, refuse the donations? Let's face it. I mean, a lot of I'm gonna be honest. A lot of these donors donate because I have relationships with them. I mean, that's the real honest answer. And I think Bill can Are you closing jet heating and and moving out? Huh? Are you closing jet heating and moving out? Maybe three years. You never know. But I mean, it's really it's a relationship thing. And I think a lot of these businesses uh do it because they want to get behind a positive thing in the community. I mean,

Exactly. And and this is a positive thing in the community. There's no whip bands or butts about it. I mean, uh, uh, it's just the fact, uh, I think we just want to smooth everything out. That's that. So, well, if the city owns it, uh, there's some restrictions on signage and stuff like that. So, that's a whole another thing. That's why we're also keeping it as until you want to turn it over, then at that point, then doesn't mean that we can't have a language when we take when we turn it over. That's a David thing. I don't know. I don't know all that. I'm just saying. I'm just saying, you know. Um, so

I have no problems with as long as I have legitimate reasons to give my constituents if they have a complaint that I could tell them, well, this is the reason why or whatever. You know what I mean? Rather than just say, well, I don't know. You know, it shouldn't probably be there because that's normally what we don't do. Yeah, I can get. But if we have an agreement with somebody and everything else, at least we can say we do, you know, that's all. Got any other questions, comments? None. Trish, please call the role. Alwoman Bainy, yes. Alwoman Miller, yes. Alman Davis, yes. Alloman Bassie,

I am voting no for only one reason and that was um line four of the agreement that we do not have it broken down who's paying for what. Alderman Dhy. Yes. Alderman Glad. Yes. Thank council. Next item on the agenda is 7D is a LAR task order. I'm looking for a motion to approve a task order and authorization for additional task orders associated with the review of the proposed Boom Creek unit 7 subdivision with a total not to exceed amount of $128,600. I'm looking for a motion to approve.

Alderoman Miller. I'll make that motion to approve uh a task order and authorization for additional task orders associated with the review of proposed Boone Creek unit number 7 not to exceed 128,600. Thank you. Seconded by Alderwoman Bainy. I second that motion. Thank you. Discussion by city council. Alone Bassie. Thank you. I just want this on the record though that I confirmed with staff that approving this task order does not preclude the possibility for changes to the site plan, including requesting more open green space and a natural barrier between the established homes and the new development. Thank you.

So, thank you for clarifying that, Ross. I appreciate that. Uh Alman Glenn. Yeah. Just uh actually in the motion it doesn't uh preclude the the fact that uh this money will be paid for by the developer in the escrow account. Correct. Correct. I already have but the Larara at this time does not have that much in the the account. They have enough to cover the preliminary engineering because the 128,600. No, it's it's 80 79,500 for the preliminary engineering. Okay.

The final engineering is the the balance of the the two. So, they don't they they didn't want to fund it because if they don't get through preliminary engineering or they they don't pass through planning and zoning or city council, then they don't have a check, you know, their money making they're making money with that money elsewhere right now. Right. But if we're going to approve 128,600, it should be with a caveat the fact that uh that it is paid by the developer wholly that we won't go forward until such a time as it's right. I believe that's in the supplement, but it's not in the motion. I I I will never uh sign a task order for even $5 if I don't have an escro account set up for them for any developer. So,

right. Um but is the 1286 is not there. So therefore correct we should have a caveat in the in the motion that that states. So add so if you want you can add at the end of that motion in the second subject to um LAR signing a retain personnel agreement for reimbursement. As long as it's covering us that's that's the main Oh covers you. Yeah. You want to repeat it? subject subject to LAR signing a retained personnel agreement reimbursing agreeing to reimburse the city for these monies uh for the these monies.

I'll watch the video. I'll watch the video. He'll write it down for you after the meeting. All right. Any other questions, comments? Hold on, Millie. I'll amend my motion to include attorney regardo's comments. Never heard of that and I'll second that motion. All right, Trish, please call the role. Alwoman Miller, yes. Alumoman Baney, yes. Alman Glad, yes. Alman Dhy, yes. Alwoman Bassie, yes. Alman Davis, yes.

Thank you, Council. Next item on the agenda is 7E Redwood task order. Motion to approve a task order with HR Green for construction observation services related to Redwood subdivision in a total not to exceed amount of $44,955 subject to the same condition. Wait, they're fully funed. I'm not asking for any more money. Oh, right. They're fully fun. Disregard that. Lenar is the only one that was not fully funded. Okay. I'm looking for a motion to approve, but the motion doesn't say that according to Aldo Miller.

I'll make a motion to approve a cast order of HR Green for construction observation services related to Redwood subdivision in a total not to exceed $44,955 which is already on account of director. Thank you. Second, Alderman Dory. I'll second the motion. Thank you. uh discussion by city council. Although ambassy, I just have one real quick question about this. Um I know that they've already received county approval, but has the state uh has ID do approved for them?

I have not seen the formal approval from ID do yet, but I they have given their preliminary approval. So, um they're just working through the bonding and those things with with the state. They they they worked with uh the difficulty here was the engineering firm that submitted to ID do is different than the engineering firm that designed Redwood because the engineering firm that submitted to ID do was working with Mr. P's on an access alignment on the north side of 120. So that that was a little bit strung out but um we do have word from IDOT that they have preliminary approved it. Okay. Thank you. Any other questions, comments by council? Please call the RO. Alwoman Miller, yes. Alman Dhy, yes. Alderwoman Bassie,

yes. Alman Davis, yes. Alman Glab, yes. Alwoman Bainy, yes. Does anyone need a restroom break before we get into the budget? All right, we're going to take a few minute break here. Take five. Take five.

Everyone ready? Suzanne, go ahead.

Good evening, everyone. Um, so I know that this will uh probably go a little bit quicker because we're not expecting any questions from the audience because as soon as they uh heard the budget presentation was coming, they all got up and left. So, um, at least at least we've got that going for us. Um, Alderman Glab asked if I could get through this presentation in 10 minutes, so I will do my best. Um, there are a lot of slides though, so I'll I'll talk through them as quickly as I can. U, obviously, if uh if anyone in council has questions, uh, feel free to jump in, uh, as we go, uh, so that we could answer those during the appropriate time of the presentation. So tonight we're talking uh primarily about the general fund which is the operating fund for the city that includes all of our operating expenses other than uh the IT department. Uh we'll also be talking about the recreation center fund and the water and sewer fund. Um the rest of the funds uh in the city will be discussed on April 6. So that includes the list that you see here. Tonight we're going to go over the uh general fund budget uh for this current fiscal year. We'll talk about uh where we expect to close at the end of this fiscal year. We'll talk about uh the proposals for um general fund revenues, expenditures, capital projects, uh the rec center budget, and the proposed water sewer fund budget. So again, those are those are our topics of conversation for this evening. Here are some highlights uh of the budget. Uh looking back over the existing fis fiscal year, um we are coming out in a very positive um positive position here at the end of of this fiscal year, we are estimated to be about 6% 6.2% higher than budget in terms of revenue and 8.4% less than budget in terms of expenditures. So obviously that's that's uh that's the good news you want to hear. Um we are we've achieved our general fund balance which is a requirement of 120 days of operations. Um, so that is fully funded. Uh, the budget we're going to be talking about this evening, the proposed budget

is balanced, uh, revenues versus expenditures by about $500,000. Uh, and we will, um, be seeing potentially, uh, a budget increase in terms of revenue of about 2.6% uh, year-over-year, which is which is always good news as well. Uh we have a proposed fund balance at the end of the year. And again, these are all estimates that could change, but right now it looks like we're going to have about $2.9 million um that the city council will have the opportunity to uh to let staff know where we would like to see those funds directed. Uh part of the budget that you will see and we'll talk about a little bit later is we're recommending a 3% increase for the water rates as well as a 5% increase for sewer rates. Um, again, we'll talk about that later, but those are um evaluated annually uh to make sure that we're covering operating expenses for those for those funds. General fund revenues, uh, our primary ones are property taxes, state and local sales tax, state income tax, and video gaming. Uh, video gaming is a big one for us as as we've talked about. Uh, in terms of the general fund expenditures, it is all personnel across the city except for water and sewer. Um, we've got contractual supplies and costs related to all of our operating uh departments, all of our operating expenses. We've got capital outlay. And then we also have transfers from the general fund to other funds uh such as it. For this next uh phase here, we're going to be focusing on uh these columns here that are highlighted in green on page 24. For those following along at home, we are estimating again to be about 6.2% 2% higher than budget uh for the hopefully for the end of the fiscal year of 2526. Uh we are seeing uh decreases in telecom and franchise taxes continue. Um obviously everyone is uh streaming from home and so that is uh something that we expect to continue to uh to decline.

What we what we have seen um this year is a significant increase in sales taxes both from the state and our local local sales tax. You can see that's 17.4% above budget. Uh we believe this is this is something that communities across the state are seeing and we think it's primarily related to the fact that uh the internet sales are now being captured fully. Uh this has been something that has been in the works for years and so now finally we're starting to see some of those some of those uh sales taxes come in. Uh video gaming as I mentioned so we're up 18.7% for video gaming. Um interest income also the interest rates have been really good. So we see um a lot of uh a lot more interest there than we anticipated which is good. Telecommunications tax again um is down 3.1%. Intertrack wagering we have one facility in town um that has been struggling and is uh we believe going to be closing their operations this year. So um you'll see some changes there. Um franchise fees as I mentioned. Um reimbursements we'll talk a little bit about. Okay. This is budget versus estimate for expenditures. Again, as I mentioned, our expenditures are 8.4% lower than what we anticipated. Um, we see some some savings in capital, but obviously that's going to be um some of these are going to be carried over to the upcoming fiscal year. So, uh it's not as significant as it looks, but it looks good for our bottom line for uh this current fiscal year. Our personnel costs are about almost 5% lower. We had some positions that went unfilled this year. Uh contractual expenses uh we uh are about almost that's about 32% uh lower than we budgeted just because we have uh some things that didn't necessarily go through this year. Um we've got some things that we projects that we started and uh are rolling over partially to the next fiscal year. So um

you'll see some of those expenses come back. Um we saw supply costs go down actually. Um but that's p primarily related to fuel. It is not related to other supplies because everything else is going up. So those fuel fuel savings were pretty significant. Um and then we see uh just a a little bit lower of the sales tax incentives that didn't go out. Any questions on any of those things specifically? Yes. Alderman Davis. Um the only question I had is on the fuel costs. Is that was that something that just because fuel costs were down or it was because our strategy of purchasing ahead of time at a mass you know a higher quantity is that what helped just more

it's by having our own tanks we get a more competitive pricing on the fuel. Okay. Thank you. I just have a question on personnel costs. Obviously, I appreciate it being lower than it is, but is any key positions that are you are you feeling any of the impact of that? Well, so one of those is is the communications position that we're currently uh recruiting for right now. Um, but obviously chief can tell you we've got a lot of turnover typically in dispatch especially. We we always have vacancies on the police department side. So, we budget for the full full staffing in the dispatch center and on the sworn side, but right now we're down two police officers and two dispatchers. And that's kind of the average as the year rolls on year after year.

Okay. Anyone else? Um, actually, yes. So, as we anticipate moving forward in our budget, and Chief, you and I have this conversation all the time. In your perfect world, how many officers would you really want? Is that something that you're in conversation about or are you still trying to do what you've done perfectly in the past? Just try to strategize? Yeah, actually Suzanne and I just had this conversation a couple months ago. The next fiscal year after this one is the year we're going to do another manpower allocation study to kind of see where our staffing levels are at, but it's not going to be this fiscal year. Yeah. And

the concern there is and again you and I have had this conversation not recently that our community continues to grow and your resources are tapped. I mean we we can't ask RPD to do another thing because you guys are great at what you do and you get it done. But as we continue to add on things I mean the bottom line is we're going to need more people and we're going to need more people trained. So, I don't want us to shortfall a budget just because we're trying to be conservative. So, thank you.

Good. All right. Let's talk a little bit about our general fund balance. Uh you can see this on page 24 uh in these in the bottom bottom uh section here. Our 2526 budgeted beginning balance was 22.1 million. Um the budgeted ending balance was 18.6. 7, but we believe that uh at the end of the fiscal year uh we're going to be sitting at about 23.7 million um because we've had uh pretty significant savings as well as the revenues coming in higher. Um if you look down in those lines, you can see those amounts are broken out a little bit here. We've got the 10.4 million uh which is our reserve back for for the policy. So that's 120 days of operations. Again, um there's a note here. Uh that will change obviously as the as the um amount of our budget changes, so does the amount of our required reserve. So, in the next round, you'll see that uh get tweaked a little bit. Um but it's still a pretty significant uh amount there that we have uh for a rainy day fund. We've got 3 3.68 million assigned for the Route 31 project that is shown on this sheet. Um just a reminder, we do have actually a total of about 6.6 million. Uh we've got another 2.9 that's sitting in the capital asset maintenance and replacement fund that the city council uh requested staff to put it put it directed staff to put aside last year. So again that's that brings our total to 6.6 million. We will see obviously where that lands us in terms of the percentage funded once I do actually goes out um and lets those bids hopefully later this year. We shall see. Stay tuned. Um we got about 1.1 million in grant funds set aside for uh 911. We've got uh money in the seizure fund there about 95 96,000 uh but that's set aside for police uh expenses. We've got 2.9 million uh that

is intended to be transferred. Um and then also 4.4 that we will have budgeted to be available which we will be discussing after the audit. Any questions regarding the fund balance? City Council has some good opportunities hopefully coming up to um you know fund some good programs hopefully and we've got obviously a lot of capital needs that we have out there um that we still have unfunded. So this will be uh hopefully helpful for future growth. All right, going over to the 20 2627 um proposed budget which you're looking at columns H and J. Now, we've got about 2.6 uh growth, excuse me, 2.6% growth forecasted year-over-year uh budget to budget. We are watching the LGDF. Uh this is a conversation that those who have been on council for a while should be familiar with. Um the local government distributive fund, the state uh keeps picking away at that. Um, as far as we've heard, the governor intends to leave the dollar amount that communities are receiving um at this at a static amount, but then obviously that percentage would drop down, but that is uh to be seen in the state budget that uh those those conversations are upcoming at the state level. We are anticipating um a 3.7% increase in property taxes. Um again, you see those sales tax numbers. Um we are increasing the budget. Uh obviously the we've got a couple years of history now that show that uh those numbers continue to grow. So um Director Lynch and I thought it was appropriate to adjust those. Uh and then you can see the list of other um other things that are going up down below. Again, interest income we've budgeted at about 33% higher year-over-year um just because of uh what we've seen in the markets that telecommunications and intertrack wagering again our uh you see a

reduction there. Intertrack wagering is at 100% as I mentioned. um we believe that that's going to be going away. Uh franchise franchise fees um continue to to go down again. You'll see we'll talk a little bit again about this reimbursements here in a minute, but that's related to uh some grant funding that has changed year-over-year. Um and there's grant funding as well that comes into the miscellaneous category. Any questions there? I know that's fairly high level. Okay. So, we're going to talk a little bit about the on the expenditures side um for the proposed budget. Uh you will see over and over again in all of the department budgets. If you if you go down to that level, uh we're seeing increases across the board in terms of the health insurance. And that's not just something that the city is experiencing. That is a market marketwide adjustment that's happening. As well as utilities, our utility costs are skyrocketing. Uh and again, it's not just the city that's experiencing that. We haven't changed any of our utilities. It's just that everything is getting more and more expensive. Um and then you will see the uh supplies go up uh across the board just because again inflation and and those types of pressures that you're seeing. The same thing you're seeing at your house, we are seeing here at the city level. Um our our personnel costs um always obviously continue to go up. People are expensive and they are most they are the majority of our budget. So um that's going up by about 6.2%. that includes increases that you would see on a on an annual basis, but also uh we want to make sure that we are uh compliant with the law. So, we've got um minimum wage increases that continue. Um we've got uh obviously this pretty significant police pension contribution that we're required uh actuarily to to do this year. Um and then those those insurance increases um are shown there as well.

our contractual costs are about 19% higher. Um there are a few reasons why that is the case and we will talk about that in each of the departments here in a minute. Um but one of them is uh a fund balance that was uh requested and required uh for our health insurance uh provider. So we'll talk a little bit about that in a minute. Uh there's our supply costs. They keep going up. And then the transfer costs are lower. So that's a little bit of relief. Um but those are all internal transfers for capital and it yeah does that personnel include filling some of those like that communications position the communications position those were in the budget. Okay last year so that does include

any other questions on that.

All right the most important thing to note this is a balanced budget. Thank you to director Lynch. Um, so we are b balanced by um about a half a million dollars. Uh, it may not look like it, but we've so we because we've got uh just over a million dollars in carryover expenses that kind of that kind of shows up in there as well, but u rest assured that this ball budget is balanced uh in terms of our operations. All right, delving into the departments here just for a minute. Um, this obviously uh is is a process that begins uh months before you guys actually see the budget. So, we've been talking about this. The departments uh put together their budgets starting in January. Uh they sit down with Director Lynch and myself. We go through everything line by line. Um and so, uh this is a process that uh takes a lot of lot of effort on behalf of a lot of people. So, thanks to everybody who participates. And obviously the budget doesn't end with uh the approval by the city council. The budget is uh something that we are paying attention to throughout the year to make sure that uh our departments are staying uh within their approved amounts. So again, the personnel costs are up by 6.2%. Um with contractual expenses, supplies um and transfers as we talked about just a moment ago. In general administration, you'll see an overall expense decrease. that's primarily due to contractual expenses. So, um this is where we put all the environmental for the developments and legal costs and those types of things. So, you'll see some reductions uh reductions there, which uh obviously ends up being an overall decrease for that budget. For community development, we've got a part-time position in there. Um as Alderwoman Miller was mentioning, obviously the the committee, excuse me, the community continues to grow. um we've got a number of uh single family

home developments and other things that are um coming down the coming down the pike. And so we are trying to uh plan appropriately for that. So um you'll see a um a part-time code enforcement officer in this budget. Um we may we may be coming back to you with a further discussion on that at the next meeting which uh may change that part-time position to a full-time position. Uh but the UDO is well underway and so those costs have gone down year-over-year. Moving on to finance, that is where that um that fund balance uh payment for IPBC for our health insurance uh that's where that lives. Um and then um the insurance costs are also uh shown in there. HR, economic development, and police. Um that we've put some potential retirements in there. We don't know if people are retiring, but just in case, we want to make sure that we have uh the appropriate budget there to give that flexibility. Um, we have in the police department uh a new drone program uh which I don't know if Chief you want to talk about that at all or

I can but um we'll be bringing it back if the budget passes anyways to discuss it further in detail.

Okay. He's pretty excited about it. He may not sound like it right now but he is. I promise. Um, again, we've got that that police pension contribution. Um, we've got some capital expenses there. Um, the men are finally getting their locker room renovated. Um, that's seizure money, so um that doesn't impact necessarily the uh the general fund, but uh that's it is run through the general fund. Uh and then they're uh getting some new speed signs. Everybody loves speed signs. Um for Nirkcom, which is our dispatch center, um we have a good partnership there. Um they're giving us again $700,000 to just to offset those personnel costs in the dispatch center. So that benefits not only the city of McHenry but also all of our partners in Nirkcom. You'll see a $700,000 increase uh for public works streets. Um that's primarily related to Venice and Oakwood Drive. Um and then some changes that we've made and shuffled some funding around um for the streets program. Don't worry, we are still doing all the streets. Um, going on to parks and wreck, you see that NISRA dues increase. I know we talked about that and the city council um decided to uh uh increase the levy there for NISRA uh this past year. Um, so that's that should not be a surprise. You see some uh in increases in contractual expenses for athletic trips um athletics, sorry, and trips and supplies. Um, but all of those have offsetting revenues. thankfully. Uh and then we have one capital expense for parks and wreck, uh a pool cover for the pool, which is important. Uh and then when we uh talk about parks maintenance, we've got some the overall budget is going down just based on uh some personnel changes, but we are making some uh operational changes um to kind of offset that a little bit. Any questions on specific

departments? Alderwoman Bassie Well, first of all, I do want to thank Director Lynch and Car and Suzanne for sitting with me last week and going line by line, department by department. So, I appreciate that. Um, my question is for the $20,000 for the pool cover. I think Carolyn, I I I'm not sure if I asked you, and if I didn't, I'm going to ask you now. Are we looking into any grants that could potentially assist with any pool improvements? So, this is more of a maintenance item. Uh, just in terms of the in the winter, we put this cover over top of it. It's a nylon cover, keeps the leaves out, that type of thing. It's not necessarily an infrastructure item. Um, I think that's going to have to be something that we address relatively soon is what we want to do with the pool. But until we navigate the um the two things that are on our plate right now, both the business analysis as well as the potential perform, which we talk about later in the budget. Um, until we do those things, I think that, um, deciding what we do with an outdoor pool, we are I'm I'm not going to say it. I'm going to try not to say it out loud, but uh, we're in pretty good shape with some of the things that we've done at the pool. Um, but it's doesn't it will always remain that it's a 1983 pool. Um, I think it was actually started construction 1981. We just Monty just found the p the original uh, manual for it. And so, uh, it was interesting paging through that. It's it's a little bit yellow at this point. Yes.

Um but it but it's going to it's going to become a serious concern. I mean at some point it is it is every year for us. Um so exploring some options of what we do. However, whatever that form looks like in that location, a different location rehab. Um that's not something we've delved into yet. And at that point is when we would really look into a grant such as a park grant is is one that uh we could potentially apply for and we did apply for when we built the recreation center. Um obviously there's other opportunities that we look into, but that's one that would that would typically fall into that category. There's not a lot out there that are going to be made grant-wise. Um and none for something like a pool cover.

Okay. Thank you. But I will say I think it speaks highly of our parks maintenance staff that they've been able to uh to maintain the pool to the degree that they have uh for as long as they have. So, thank you for that. Any other questions on uh departmental expenses? All right. Okay. We're going to talk a little bit about general fund uh capital projects. Uh we have a capital improvement plan, capital investment plan that we'll be bringing back uh for the city council. We've been working very hard. Uh the staff's been working very hard uh the public works staff specifically has been working very hard uh in uh in recreating and improving our capital investment plan. So we're excited to show you that at the at the next meeting. Um this this conversation tonight is specifically about only the items that are included in the general fund for capital. So again, it's it's projects that use general fund balance and streets expense line. Uh so we've got a couple of projects here that you hopefully are familiar with for excess fund balance. We've got uh $375,000 for the Riverside Streetscape. No total we're doing the Riverside Streetscape for $60,000. We've got the Bull Valley Road local bridge formula program phase 1 engineering for 75,000 and the city gateway entrance signs for $240,000. That's something that we have been talking about now. It's been in the budget for a couple of years. Um, Director Martin is now uh in the thick of trying to uh move that move that um program forward, that project forward. So, we will be talking a lot more about that in the upcoming year. In terms of streets operating expenses, we've got about 1.36 million in there um for Venice Avenue, Oka Drive, pavement markings, pavement cores, curb repairs, and materials testing. So, if anybody has any questions about that, I'm sure that Director Adams would love to answer those for you. Um, as I mentioned previously, we're going to be talking a

lot about um, other capital items on April 6th. Anyone? Okay, it's going fast. All right, let's uh talk about the rec center for a minute here. Uh, we are uh entering into the eighth full budget year for the rec center. Um, as as the council is familiar, when we first opened the rec center, uh, it was doing very well for the first few years. The goal has always been for the rec center to be a business operation that pays for itself. Uh, postcoid though, we've struggled quite a bit to make that re make that a reality. Uh, which is why right now we're in the midst of the business analysis for the rec center. We have a consultant that we're working with uh, who is doing a deep dive into all things rec center related. uh staffing, marketing, programming, uh everything that you can think of. And so we are anxiously awaiting the results of that study to sort of help us uh as staff make a plan uh to move forward and and make sure that we are doing the best we can to cover those expenses. Estimated revenues uh for 2526 are coming in uh just right about budget, about $3,000 difference. Um we are funding again the general fund funded this year uh $120,000 to support the operations of the rec center. That $120,000 shows up again in the upcoming budget year. Uh hopefully at some point we will be able to to reduce that number down obviously based on some of the changes that we're that we're hopefully going to make coming out of the analysis. We are going to be uh replacing some fitness fitness equipment this year for a cost of 11,000. Any other questions about the rec center? Or Bill, do you want to say something?

Yeah, go ahead. Sorry. He He looked like he wanted to say something. Your mic.

No, you're good. uh on that general fund transfer and um our front desk at the rec center. There's a portion of our staff and personnel uh that um we attribute their costs to the rec center. However, it's a function of the parks and recck department. So, this isn't we're not losing necess and uh when you look at it of a transfer, we're not carrying that whole 120 from operations. There's a portion of that that they serve the function. We've always had front desk a full-time front desk staff even when we were in this building. And so I think that's important thing to remember that um even though that money is allocated to the rec center, there's part a big portion of that transfer is due to personnel that we always had in place even when we were just a parks and recck department. So it's not that we're losing $120,000 a year and that's why this money is being transferred. There's a significant portion that's personnel that was always associated with the parks department. Floor is yours. Thank you. And I I am aware of the fact that we are currently working with a consultant to increase revenues, but in the short term, have we looked at cutting any expenses? For example, adjusting the hours of operation based on peak time or completely empty time. There's never a completely empty time that we have. Um, I think that's a big portion of the study right now is examining every room, every space, how much it's getting used, how it's getting used. That's a huge portion of what we're going through from the business analysis, but there's never completely dead bedtime. Um, from the facility as a whole, there's always going to be somebody in the fitness center. There might be some class going on. Um, we have adjusted hours of operation in the past. Um we continue to uh I say on a yearly basis look at how we can uh operate better, how we can operate leaner. Um I think we've done a good job of that as well as making some gains. Um there's been some steady progress that

we've seen in membership of gains almost every single month this past year. It might those big those big inputs of gains aren't always the greatest thing. They're nice they're nice in the short term. Um, but when you can see slow steady gains throughout the over the course of the whole year, to me that's we're doing something right and people are uh continuing to choose us and that's uh that's been important to us. So those slow steady gains and we just I think we're over 1300 full-time regular members now. Not counting any punch passes, not counting anything else. I think uh we are over 1300 I believe. I don't have those numbers right in front of me.

So you've got I want to make sure I'm hearing this correctly at this point. You have 1,300 membership. Are they all 100% Mckenry residents? And you, you know, you don't necessarily have to know the numbers. They're they're not they're not 100% Mckenry members. Okay.

Yeah. We don't uh the only difference between for our point of view when we charge members, uh they're all charged the same rate on a monthly membership. Um that's because we built it with a recreation center fund and not with city tax dollars. Um the other portion of that is the difference is when they do sign up there is a larger initiation fee for a non-resident versus a resident. So that impact that we hit them is at the very front um versus over the course of uh trying to define different membership levels. Do you have any idea what last year let's say the end of March of last year to the end of March now or we can even say February. Do you know what we had for membership then and what we've had now?

And and if you don't know, if you want to just send us all a little email, that will work also. I can I can send that to you because I have a spreadsheet over the course of the last year. You can see every month what we've had gains or losses. And every year there's there's going to be that turnover. You're going to lose some every month. You're going to gain some. You always hope you gain a few more than you lose, right? Is is the goal. And we've done a pretty good job of that. Okay. Thank you.

Anyone else? anything rec center related. Okay. Oh, I I just want to say that the opportunity to work with the um person who's doing the analysis uh was a great experience and I think he understands our intention that the rec center needs to be a self-supporting enterprise and I know I don't know about anybody else but I know I had hours of conversation with the gentleman and I think we'll get there. So, thank you for that opportunity and um I I think next year when we review these numbers, we'll be in a completely different place. Thank you.

Thank you. Thanks for saying that. Okay, moving on to water and sewer. We're getting through this quickly. Everybody stay awake. All right. As I as I mentioned, um water and sewer, it's an enterprise fund. So, again, similar to our conversation about the rec center, you want your revenues and your expenses to be balanced, right? You want it to be self-supporting. Um the revenues are derived uh straight from water and sewer sales as well as base charges, connection fees, and service penalties. Um in 2021, the city council adopted base fees to ensure funding source for our maintenance and replacement projects. So that's uh been extremely helpful. The operations are funded through water and sewer rates and those are reviewed and adjusted annually as needed. Um and that is again per uh the direction of the city council. Water rates were increased by 3% for this current fiscal year and sewer rates were not adjusted at all for this fiscal year and that is why we are coming back to you for a higher sewer sewer adjustment than the than the water adjustment. Um the operating expenditures for the water division uh are up 2.6%. You'll see those higher utility costs in there. Um obviously for water and sewer utilities are um very very impactful. um as well as some uh personnel and benefits uh moving around a little bit um and some other option other uh projects that we needed to do uh on the water side. Uh we're looking again to the city council for a 3% water rate adjustment which was what we're recommending for fiscal year 2627 um that is um again 3%. In terms of the sewer division um their operating expenditures are up 2.8% 8% again you see those utilities uh personnel benefits um is some additional testing that that the staff has to do um and just repairs and maintenance. So again a 5% sewer rate adjustment is

recommended for the upcoming fiscal year and then when you uh look at the utility division u their uh expenses are also up by about 2.4%. So questions on that all the room Bessie. So if I'm reading this correctly, we are looking for a little over $300,000 of additional revenue. Is that the reason that you want to increase? I mean that's what we're looking at if you take the two combined.

Yes. Okay. So if this is similar and I know this is more than we put in the rec center, double it plus. Um is there any reason why we cannot feed some of the money from the general fund into their into the water and sewer similar to what we do for the rec center and maybe not raise the rates as high or hopefully try to avoid raising it completely. And I know we had this conversation when we met last week.

Yes. And as and as Caroline and I uh discussed with you last week, um it's I think we would be definitely in the minority if we were to um to start supplementing the water and sewer funds with the general with the general fund. Um obviously the general fund has a lot of competing priorities for that money. Um and the water and sewer fund is intended to be a business fund that is fully self-supporting. And so, um, comingling those funds, I think would be, um, a it would have a pretty negative outcome and I think it's, um, not great from a transparency perspective either. Um, I don't know if Director Lynch has anything to add.

I I don't have much to add. I mean, it's an enterprise fund. It's supposed to support itself. Um it we when we did our rate study we talked about um doing an annual analysis on our operating revenue versus expenses and that's what we are bringing forward at this time. Thank you.

You know and I should add to that I've seen this happen and I I thought auditors require um I think they call it two from that you have to pay it back. It's it's a loan. It's considered a loan to the water and sewer and the the cities that do this are not in good shape. They haven't been increasing their sewer and water rates annually and they get in trouble and that's when they they borrow because they have expenditures they can't cover and it's a loan and now you have to pay it back. That's a big problem in in smaller towns, not this size, but that's when I've seen it. Otherwise, I don't see it. So I I just want to confirm what you were saying that if we did fund any additional money in here from the general fund, we would be required um by law or by accounting purposes that we would

I have no idea. I'm just telling you I've heard that from auditors. So it would be an auditor question whether that is a liability that has to be paid back. Okay. They call it to from. Do you know what that means? It sounds like an account. Yeah. I mean, if we I I would have to look into it further, but most times it would be a loan, but I would assume there's probably a way to to make a grant from the general fund that it would wouldn't have to be paid back. And it's because of the type of fund that this is. It's a it's a fund that you'd be self self sustaining sustaining. Okay.

It's also a slippery slope. It's it's an enterprise fund. You want to break even. That's the whole goal of it. It's a use tax. You're using the water, you're using the sewer, you're paying for it, unlike the general fund. And and the the membership isn't the same necessarily. The members who are using water and sewer aren't necessarily the general fund taxpayers. And to the extent they're different, that's a liability issue. Okay. Thank you for clarifying all of that.

I think the other thing in the water sewer fund, it's an ondemand. you know, you you as a consumer, you do have a control of what you use. And again, it's an enterprise. So, just like your electricity bill and your gas bill, you don't control the price, but you control the use. And I think when you talk to people who have gone into sticker shock on their electricity and their gas bill, myself included, you know, my thermometer or my thermostat is now set at 65, not 72. Um, you know, just because I went, uh, how do I do that? Um, and I think when we talk about water and sewer, I always tell my constituents when they complain about the bill, it's how much you use. You can control what you use. Um, sounds ridiculous, but you can.

All right. Anyone else? Yes. Go ahead. Let's talk about the debt service on the water resource. Where are we with the debt service? We should be escalating as far as how fast we're paying that off considering we have approved so many uh apartments in the last several years and each unit is paying part of that debt service. So, um should be a we should be moving forward quicker, I would think, as far as paying off those those debts. So from a bond standpoint, you we can't pay them off early. Okay.

So um those have to be called. They can't be paid early. Okay. So they can't be called early. So they can extra money. Huh? What happens to the extra money then? I mean it is all accounted for in as debt service. So we have it all available for for debt service. So it's not being spent on anything if we have additional cost. We banking it separately. Yes. Okay. Yeah, we have it. We have accounting of all of those funds. Yes. So, we should have actually a reserve by the time we get done paying it. And what year are they uh um expiring? Do you remember? You would think I remember because this comes up every year, but

you don't think I'm going to get get with you before the meeting and ask you these questions, you know? I mean, it'd be too easy. No comment. See,

if you would email them to me, that would be No, I can get it really quick. It's just finding the right one.

All right. Well, Director Lynch is looking for that. Let's just run through this last slide. Um, as I mentioned, so this is this is the uh general fund conversation. We will be taking the next couple of weeks to make any modifications that the city council directs uh this evening, as well as anything else that pops up. I mentioned that um obviously the code conversation that we want to have and there's a couple of other small items. Uh April 1st the updated operating budgets and the rest of the funds will be going out to the city council for your review. We will be talking again on April 6th um about the full budget u as well which includes every fund um as well as the capital investment plan. Um then we'll have a couple of weeks um to uh to to get through that. We'll figure well you know we'll finalize everything. We will send it out on April 15th. And then on April 20th, the uh it will come to the city council for consideration.

December 15, 2029 is the $6 debt service fee. The $6 debt service is Yeah. What year again? 29. 2029. Okay. 2029. And then the loan is longer than that. Yeah. Because that one didn't get done until years later. Yeah. Two years later or something.

Yeah. I mean, I will I will say uh we've had some conversations just as staff about um the kind of significant uh challenges that we have out there from a budgetary standpoint. Um specifically lead service line replacement, but we've got some other maintenance items um that are that are kind of out there that we're working through trying to create a plan um for for how to pay for some of the things that we have um coming up uh in the future. And so there may be a a future conversation about some additional um bonds or something that may that may um have to be contemplated for water and sewer. So we're glad that's rolling off. Yeah. The loan is not till 2037 just for

your info. All right. Okay, Miller,

I just want to um thank you Suzanne for taking my phone calls and answering or addressing all my questions about the budget preparation. Um what you've brought us is very comprehensive and somewhat complex. So, thank you for breaking it down and giving it to us in bite-sized nuggets. Um because truly the budget for the city is overwhelming and it's nice to have it in pieces and parts and I'm grateful that you're able to not only communicate it to us in this direction but also that you're willing to take our individual calls and help us through the overwhelmedness of it all. Thank you.

Absolutely. And I'm and I'm grateful for Director Lynch because when uh when you call me with a question and I don't know the answer, she always does. So it's a team effort for sure. Thank you, Caroline. I didn't bother you this year. Anyone else? Um just real quick question. Um April one we will be getting um the TIFF budget. Yes. Okay. All right. When we get that, is it possible to get some guidance as to how much we currently have loan, how much the general fund has loaned the TIFF, and any kind of a payback schedule. If we could get that included in the April one budget, would that be possible?

That will not be included because the TIFF is in the deficit. It's not owed to the general fund. We've had this conversation, but the money we are taking money out of the general fund right now, aren't we? No. Okay. So, when we bought the old Gladstones building for over $500,000, Green Street Cafe. Green Street Cafe. Some of us have lived here a long time. Yeah. That I mean it's coming out of the TIFF fund. Okay.

So there I mean there's a deficit in the TIFF fund. If at the end of the tiff there is still a deficit, the general fund will have to pay it back. But currently the tiff fund is accounting for all of money that is going out and is a deficit. Okay. So at this point the general fund is not putting any money into the correct. That's correct. Okay. That's that's very good to hear and thanks. Anyone else? Questions?

All right. Well, thank you very much. Um, obviously if any questions come up uh in theuh next couple of weeks, we are here to answer them. Um, but I appreciate everyone's uh help, assistance, and uh patience this evening. Thank you. All right. Uh, let's see. Staff reports. Any staff reports this evening? Ross,

I just want to touch on something, mayor, that you called me on. Um, but Suzanne had sent an email out last week. Lar and Redwood are both putting up silk fence around their properties. Um, so you might get some calls from some residents. Uh obviously Redwood is approved already. Uh permits are being issued for them. LAR is not approved and you can let your constituents know that it DNR IDNR or IDNR requires them to put up a silt fence if there's a potential for them to move any dirt within this next year because of the Blandings turtle. So it keeps the Blandings turtle out of the development area. Um doesn't necessarily mean that they're going to move dirt this year. Obviously, they have to go through all those approval processes still, but I just wanted to make you aware of that because they are out there.

Appreciate that. Any other staff reports?

No. Okay. All right. Uh, mayor's comments. Uh, I just want to uh congratulate the police department and Chief Burke on the seventh Kalia reacredititation award. We just got back from uh Arizona about four hours, 5 hours ago, whatever it was. our flight got cancelled, so we drove here. Um, so that was a fun trip. Um, thank God we like each other. Um, but I just want to uh congratulate them again. Um, obviously it's it's the highest standard uh in professional policing. Um, definitely the elite of the elite. So, uh, it's great to see other departments there um, and talk to them and see what they're doing. Um, it's great to see once again there was 110 police departments and being one of those 110 is obviously a a great success uh of what Chief Burke and Deputy Chief Walsh is doing along with uh Adriana Burke which is the accreditation manager uh which she took over what a year and a half ago um and has done a great job uh with that role. So uh once again thank you and thank you to all the police officers and uh the entire police staff for um getting that done. So,

um, Kalia, C A L E, uh, Shamrocks the Fox, great job, Bill Hopson. Uh, the rest of the staff that was involved in that. Um, all the volunteers and so forth. Um, I was not here to take uh to partake in that, but I hear it was great. Um, but uh, great job again for another solid year. We didn't lack any challenges again.

There was uh the tent stayed up, so that's good. Some of them did, other of them not. It all worked out. It looks like uh looks like a pretty good year for us to we'll do all the accounting and we'll figure out where we're at, but it looks like a pretty good year for us all things considered. It certainly was a great a really great year around town on that Saturday. The amount of people that were out for the parade and and for all the festivities overall was it never ceases to amaze me, honestly. It's a lot of people.

Oh, great job. Great job. So, uh, also one more thing. Um, I just got word that, uh, Bob Peterson had passed away, uh, last month. Um, they just put it in the paper. I think they wanted to keep it on the down low until things got situated. But, uh, uh, he served on the city council from 2003 to 2017. Served on the parks and recreation committee. uh Bob played an important role in development of the parks in open space master plan, the bike path uh plan as well along with Peterson Park. So um you know prayers to his entire family uh and thank uh him for his service obviously and uh yeah tragic loss for sure. So uh other than that that's all I have. Any city council comments this evening? Oh, Alman Davis,

I just wanted to say that uh um for Shamrocks of Fox, thanks. I know always always seems to be a challenge, but there was actually uh a lot more people than I expected to be with the weather the way it was. I mean, we had sun and rain and snow and w, you know, high winds and everything else. So, uh we enjoy volunteering and stuff like that just to get out. So, um, thank you to everybody and thanks for putting it on. And the staff, I know you guys put in a lot of hours, so it's, uh, very much appreciated. And, um, they don't get what they deserve for the time that they put in. So, um, just wanted to say thank you.

Any other city council comments? Motion to adjurnn. Alder Bainy, I'll make a motion to adjurnn. Second by Alderman Dhy. Second. Trish, please call the role. Alderwoman Bainy, yes. Alderman Dhy, yes. Alderman Glad, yes. Alwoman Bassie, yes. Alderman Davis, yes. Aloman Miller, yes. Thank you everyone. Have a good evening. Don't fall asleep on the way. Mayor, you live close. I live so close compared to 25 miles.